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<br />TAX E2(E]\lPTIOf~8 F()R BTJSIl.JESSES
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<br />40-57.1-.03
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<br />hapter, unless a different
<br />
<br />3d in section 40-57.1-04.3,
<br />corporated under the laws
<br />1 organized under the laws
<br />f furthering the economic
<br />iTjrons, with authority to
<br />llnent of business concerns
<br />18 operations of the corpo-
<br />l limited to a specified area
<br />the corporation or limited
<br />least twenty-five persons
<br />lity or its environs. These
<br />y-five percent of the voting
<br />Jility company. No share-
<br />ited liability company may
<br />the voting control. in the
<br />jT if that shareholder or
<br />in any project or business
<br />. the corporation or limited
<br />[' the corporation or limited
<br />,~ community through in-
<br />,) lum.e, and corresponding
<br />shareholders or members.
<br />lag to the shareholders or
<br />() primary objective of the
<br />
<br />nunicipalities of the types
<br />
<br />idual, corporation, limited
<br />atiol1 which through the
<br />:,Jue to a product, process,
<br />PW wealth.
<br />1 tel'prise, or any combina-
<br />the purpose ofthe income
<br />nary sector business" and
<br />ludes the establishment of
<br />)Jl of a qualifying existing
<br />
<br />40-57.1-03. MmticipaH.ty's autlwritv t-Q ~ilU'.'1.t taz exemption OT:
<br />payments in lieu of taxes - NoHce to c;mr~petitcrs - LP.mltatlior.ts.
<br />After negotiation with a potential project operator, a municipality may grant
<br />a partial or complete exemption from ad valon3m taxation on all buildings,
<br />structures, fixtures, and improvements used in or necessary to the operation
<br />of a project for a period not exceeding five years from the date of comm.ence-
<br />ment of project operations. A municipality may also grant a partial or
<br />complete exemption from ad valorem taxation on buildings, structures,
<br />fixtures, a..l"J.d improvements used in or necessary to the operation of a project
<br />that produces or manufactures a product from agricultural commodities for
<br />all or part of the sixth year through the tenth year from the date of
<br />commencement of project oper8_tions.
<br />In addition to, or in lieu of, a property tax exemption granted under thLs
<br />section, a municipality may establish an amount due as paymellts in lieu of
<br />ad valorem taxes on buildings, structures, fixtures, and improvements used
<br />in the operation of a project. The governing body of the municipality shall
<br />designate the amount of the payments for each year and the beginni.ng year
<br />and the concluding year for payments in lieu ortaxes, but the option to make
<br />payments in lieu of taxes under this section may not extend beyond the
<br />twentieth year from the date of commencement of project operations. 'T'o
<br />establish the amount of payments in lieu of taxes, the governing body of the
<br />municipality may use actual or estimated levels of assessment and taxation
<br />or may establish payment amounts based on other factors. The gov8rnJng
<br />body of the municipality may designa.te different amounts of paynle:J.ts in
<br />lieu of taxes in different years to recognizG future project expaLsioD plans 0-:'
<br />other considerations,
<br />By November fil"st of each year, the municipality that granted the option
<br />to make payments in lieu of taxes shall certiJy to the county auditor the
<br />amount of payments in lieu of taxes due under tbis section in the follov,ring
<br />year. Mter receiving the statement from the municipality, the county
<br />auditor shall certifY the payments in lieu of taxes to the county treasurer for
<br />collection at the time when, and. in the manner in which, ad valorem taxes
<br />must be certified. Upon receipt by the county treasurer of the amount of
<br />payments in lieu of taxes under this section, the county treasurer shall
<br />apportion and distribute that amount to taying districts on the basis on
<br />which the general real estate tax levy is apportioned and distributed. The
<br />municipality may Gnter into a written agreement with the local school
<br />district and any other local taxing districts that wish to enter the agreement
<br />for an alternate method of apportionment and distribution. If such an
<br />agreement is entered into, the county treasurer shall apportion and distrib.
<br />ute the money according to the written agreement. .All provisions of law
<br />relating to enforcement, administration, collection, penalties, and delin.,
<br />quency proceedings for ad valorem taxes apply to payments in lieu of taxes
<br />under this section. However, the discount for early payment of taxes under
<br />section 57-20-09 does not apply to payments in lieu of taxes under this
<br />section. The buildings, structures, fixtures, and improvements comprising a
<br />project for which payments in lieu of taxes are sHowed under this section
<br />must be excluded from the valuation of property in the taxing district for
<br />purposes of determining the mill mte fer the taxing district.
<br />Negotiations with potential project operators for taxezern.ption or
<br />payments in lieu of taxes must be carried on by the city council or
<br />commission if the project is proposed to be located within the bcundaries of
<br />a city, and by the board of county comr:..1issioners if the project is pl'Oposed to
<br />be located outside the corporate limits of any city. A partial exemption must
<br />be stated as a percentage of the total ad valorem taxes assessed against the
<br />
<br />ll"lGsses and activities in-
<br />~vellts, guide services, and
<br />'I'Ve as destination attrac-
<br />
<br />."7.1-02 was amended twice by
<br />,:'R]ntive Assembly. Pursuant to
<br />,19.1, the section is printed above
<br />and give effect to the changes
<br />ion 1 of chapter 407. S.L. 1993,
<br />; of chapt.er 92, S.L. 1993.
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<br />:;87
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